So Paulo (Businesshala) – Brazilian fuel distributor Vibra, formerly known as Petrobras Distribudora SA, has struck a 3.25 billion reais ($590 million) deal to acquire a 50% stake in energy trading company Comark, a Vibra statement said late on Friday.
Vibra said Brazil’s fourth-largest energy trading firm Comark would drop plans for an initial public offering after its board of directors approved the deal. Brazil’s antitrust regulator CADE still has to approve the deal.
Vibra will make the acquisition by way of debentures of 2 billion reais convertible into 30% of common Comark shares, with an option to acquire another 20% of Comark’s shares for 1.25 billion reais. The debentures will have a maturity of 4 years, convertible into common shares before February 28, 2022, Vibra said.
Comrak was pursuing an IPO to raise approximately 1.5 billion reais ($272.16 million) and secured a total of 1.2 billion reais with eight fund managers, but instead opted for an M&A deal with Vibra, as was the case. Businesshala previously reported.
The Comark acquisition in another step in the reinvention of Vibra as an energy company focused on the transition towards a low-carbon economy, the statement said.
In a series of deals to expand its business, Vibra in August announced the formation of an ethanol business joint venture with Copersucar, which will receive Rees 440 million in investment.
Comrc, one of Brazil’s main energy retailers, currently has a portfolio of products and services that reaches an average traded energy volume of approximately 2 GW, with over 3,400 consumer units under management.
With its restructuring, the company becomes the owner of the solar generation parks, which have an installed capacity of 1,839 MWp, with 242 MWp in operation and the rest under development.
“In the coming years, comark will be one of the main”
investors in solar production in the country,” it said.
($1 = 5,5115 reais)